So the first "episode" maybe coming out next year, the entire game will probably in Midgar only. I am okay with it, Square Enix probably plans to expand Midgar in a way you can spend as much time as you need in there? For example like all those events you encounter in Yakuza Kiwami?

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Yes, the Final Fantasy VII Remake is still episodic

Which explains why we've basically only seen Midgar

Just in case you were somehow holding out hope that the Final Fantasy VII Remake wasn't going to be episodic anymore, Square Enix has dashed your hopes again.

Despite the fact that it was announced as episodic after its reveal, and there's been a bunch of shuffling around as personnel, some folks thought that the game would somehow now be released as one complete work. That's still not the case according to the official website that launched after the new trailer debuted in yesterday's State of Play stream, which states that the project is still a "separate work," based on this translation (分作 = parts/division).

At this point we pretty much know how this is going to play out. Square Enix is likely going to announce a 2020 window for part one of the remake (which could be a portion or possibly all of the Midgar sequence of the game, semi-akin to much of "disc 1" of the original PSOne release) next month during their E3 stream. If they really want to blow minds they could announce that at the Microsoft conference and reveal that it's multiplatform, otherwise we can probably expect the remake to be a cross-generational game on PS4 and PS5.

This is what EVERYONE wanted or at least the vast majority. Seems to me it would've been much easier to do so. I'm more than happy chugging away with the recent XB1 release. It's much easier on the eyes than any other version I own so I'm content.

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"I'll play almost anything but I won't finish almost anything there's a difference." Escaflowne2001